Austin – State Senator Craig Estes (R-Wichita Falls) today pre-filed SB 113, a bill that repeals Texas’ business tax, commonly known as the margin tax.
“The margin tax has been a big disappointment. It is inequitable, costly, and complicated for Texas businesses and has undermined the state’s competitive advantage,” Estes said. “We understand in Texas that businesses are job creators, and we must do all we can to alleviate the pressures they face in this difficult economy and the impending federal fiscal cliff. Now more than ever, we must ensure that our Texas economy remains business friendly to attract growth and job creation.”
Scott Drenkard, an economist at the Tax Foundation, added that “The Texas Margin Tax is a very damaging component of an otherwise well-structured state tax system. Eliminating this complex and distortionary tax would make the Lone Star state one of the most competitive tax climates in the country.”
“Passing this bill will supercharge our state’s economic engine,” Senator Estes said.
Senator Estes represents Senate District 30 covering Archer, Baylor, Clay, Collin (part), Cooke, Denton (part), Grayson, Jack, Montague, Parker, Palo Pinto, Shackelford, Stephens, Throckmorton, Wichita, Wilbarger, Wise, and Young counties.
The Tax Foundation is a nonpartisan research organization that has monitored fiscal policy at the federal, state and local levels since 1937.
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